Effects of liberalization on dairy cooperatives in western province, Kenya

The study sought to establish the effects of liberalization on performance of the dairy cooperatives in Western Province of Kenya. It sought to find out if there were any dairy cooperatives that collapsed due to liberalization, registered drop in its membership, or reduced milk volumes handled. Primary data was obtained from dairy cooperative officials, KDB and MOCDM officers. All the 27 dairy cooperatives in Western province, Kenya formed the population to provide data for this research. To collect data, questionnaires were administered at the sampled dairy cooperative societies’ officials and an interview schedule for the KDB and MOCDM officers. The instruments were administered face to face. The study was limited to dairy cooperative societies in Western Province of Kenya for the period between 1992 and 2008. The instruments were given to three experts from University of Nairobi for validation. A pilot study was also carried out in Moi’s Bridge dairy cooperative in Rift Valley province. The researcher employed statistical methods such as percentages, measures of central tendency, measures of dispersion or variability – variance, standards deviation and split-half technique were used to determine reliability of the instruments. All dairy cooperatives operating in Western Province were selected to ensure high degree of representation of population characteristics. Non- probability sampling was used to select the three officials of the cooperatives (chairperson, manager, secretary), the KDB official and District Cooperative officers in the area where the dairy cooperatives fall. The relevant statistical methods such as percentages, measures of central tendency- mean, median and measures of dispersion or variability – variance, standards deviation were used to analyze data. The data was presented in both descriptive and quantitative forms using percentages, frequency distribution tables and graphs. The research findings indicated that liberalization had adverse effects on dairy cooperatives in Western Province, Kenya and have not been able to recover to the levels reached before onset of liberalization. Between the years 1992 and 2008, all the sampled cooperatives indicated that at one time the cooperative had ceased operating, registered drop in milk volumes, membership and turnover. There was also gender imbalance in the managements of cooperatives with dominance of male above the age of 56 years. Based on the findings of the study it was recommended that the government departments and relevant stakeholders play a more active role in capacity building of dairy cooperatives and enforcement of regulations. The cooperatives also required financial assistance to acquire means for transporting milk from farms and also to the market and further assistance to revive the stalled coolers and purchase equipment. The research also identified areas that still required further research, these included studies to examine other factors that could have led to decline of dairy cooperatives after 1992, role of stakeholders in the dairy cooperatives and the rate of adoption of various technologies by the cooperatives.